Room for maneuver on fiscal policy seems limited for Group of Seven economies when their finance ministers and central bank chiefs discuss growth at a meeting in Sendai on Friday and Saturday.
This is unwelcome news for Japan, which is looking to hammer out new fiscal stimulus in the coming months and hopes to champion coordinated action with G-7 counterparts amid growing economic uncertainty in Japan and abroad.
While the finance ministers do not plan to issue a communique in Sendai, the content of their discussions will be closely watched, as Prime Minister Shinzo Abe has said the economy is a top priority during the G-7 Ise-Shima summit next week.